AIM:FLX

Stock Analysis Report

Executive Summary

Falanx Group Limited, through its subsidiaries, provides cyber defense and intelligence services to blue chip and government clients worldwide.

Risk Analysis

Earnings have declined by -9.37% per year over past 5 years

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (£6M)

+ 2 more risks


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has Falanx Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FLX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.6%

FLX

-1.9%

GB Professional Services

-0.8%

GB Market


1 Year Return

-49.6%

FLX

18.6%

GB Professional Services

8.5%

GB Market

Return vs Industry: FLX underperformed the UK Professional Services industry which returned 18.6% over the past year.

Return vs Market: FLX underperformed the UK Market which returned 8.5% over the past year.


Shareholder returns

FLXIndustryMarket
7 Day-1.6%-1.9%-0.8%
30 Day-1.6%1.8%-0.3%
90 Day3.4%-1.8%2.1%
1 Year-49.6%-49.6%21.4%18.6%14.1%8.5%
3 Year-76.1%-76.1%53.5%43.0%19.2%4.0%
5 Year-96.4%-96.4%116.7%91.0%41.8%9.5%

Price Volatility Vs. Market

How volatile is Falanx Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Falanx Group undervalued compared to its fair value and its price relative to the market?

0.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FLX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FLX's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FLX is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: FLX is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FLX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FLX is good value based on its PB Ratio (0.8x) compared to the GB Professional Services industry average (2.7x).


Next Steps

Future Growth

How is Falanx Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.5%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Falanx Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Falanx Group performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLX is currently unprofitable.

Growing Profit Margin: FLX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FLX is unprofitable, and losses have increased over the past 5 years at a rate of -9.4% per year.

Accelerating Growth: Unable to compare FLX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FLX is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (12.3%).


Return on Equity

High ROE: FLX has a negative Return on Equity (-24%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Falanx Group's financial position?


Financial Position Analysis

Short Term Liabilities: FLX's short term assets (£4.6M) exceed its short term liabilities (£2.4M).

Long Term Liabilities: FLX's short term assets (£4.6M) exceed its long term liabilities (£7.6K).


Debt to Equity History and Analysis

Debt Level: FLX is debt free.

Reducing Debt: FLX has not had any debt for past 5 years.


Balance Sheet

Inventory Level: FLX has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if FLX's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FLX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: FLX has less than a year of cash runway if free cash flow continues to reduce at historical rates of -23% each year


Next Steps

Dividend

What is Falanx Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.3%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate FLX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FLX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FLX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FLX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FLX's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Falanx Group's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Mike Read (71yo)

2.1yrs

Tenure

UK£173,333

Compensation

Mr. Michael D. Read, also known as Mike, has been President and Chief Operating Officer of OneMain.com, Inc. since May 1999. Mr. Read has been Chief Executive Officer of Falanx Group Limited since November ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD227.07K) is below average for companies of similar size in the UK market ($USD324.97K).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.1yrs

Average Tenure

52yo

Average Age

Experienced Management: FLX's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

52yo

Average Age

Experienced Board: FLX's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: FLX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£19,18825 Sep 19
Alexander Hambro
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,000,000
Max PriceUK£0.02
BuyUK£7,15624 Sep 19
Michael Read
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares400,000
Max PriceUK£0.018
BuyUK£5,26631 May 19
Michael Read
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares250,000
Max PriceUK£0.021
BuyUK£4,00018 Feb 19
Ian Selby
EntityIndividual
Role
Member of the Board of Directors
CFO, Company Secretary & Executive Director
Shares170,612
Max PriceUK£0.023
BuyUK£9,80018 Feb 19
Michael Read
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares400,000
Max PriceUK£0.025
BuyUK£4,99021 Dec 18
Ian Selby
EntityIndividual
Role
Member of the Board of Directors
CFO, Company Secretary & Executive Director
Shares172,069
Max PriceUK£0.029
BuyUK£15,37521 Dec 18
Michael Read
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares525,000
Max PriceUK£0.029

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 94.4%.


Management Team

  • Ian Selby (52yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£150.81k
  • Mike Read (71yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: UK£173.33k
  • Charles Hollis

    Managing Director

    • Tenure: 2.4yrs
  • John Blamire (43yo)

    Founder

    • Tenure: 7.3yrs
    • Compensation: UK£150.81k
  • Dick Morrell

    Group Chief Technology Officer

    • Tenure: 2.3yrs
  • Rick Flood

    Chief Marketing Officer

    • Tenure: 1.9yrs

Board Members

  • Ian Selby (52yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£150.81k
  • Alex Hambro (57yo)

    Non-Executive Chairman

    • Tenure: 0.8yrs
  • Mike Read (71yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: UK£173.33k
  • John Blamire (43yo)

    Founder

    • Tenure: 7.3yrs
    • Compensation: UK£150.81k
  • Emma Shaw (50yo)

    Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: UK£35.00k

Company Information

Falanx Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Falanx Group Limited
  • Ticker: FLX
  • Exchange: AIM
  • Founded: 2012
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£6.106m
  • Shares outstanding: 400.40m
  • Website: https://www.falanx.com

Number of Employees


Location

  • Falanx Group Limited
  • Five Kings House
  • 1 Queen Street Place
  • London
  • Greater London
  • EC4R 1QS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLXAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2013

Biography

Falanx Group Limited, through its subsidiaries, provides cyber defense and intelligence services to blue chip and government clients worldwide. The Falanx Cyber division provides cloud-based cyber monitori ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 21:24
End of Day Share Price2019/12/06 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.